This article was the subject of an educational assignment in 2014 Q1. Further details were available on the "Education Program:University of Toronto Mississauga/CCT110: The Rhetoric of Digital and Interactive Media Environments (S2014)" page, which is now unavailable on the wiki.

^[1]

^[2]

^[3]

^[4]

Digital transformation refers to the changes associated with the application of digital technology in all aspects of human society.^[5] Digital transformation may be thought as the third stage of embracing digital technologies: digital competence → digital literacy → digital transformation. The latter stage means that digital usages inherently enable new types of innovation and creativity in a particular domain, rather than simply enhance and support the traditional methods.^[6]. In a narrower sense, "digital transformation" may refer to the concept of "going paperless".Digital transformation affects both individual businesses^[7] and whole segments of the society, such as government,^[8] mass communications,^[9] art,^[10] or medicine.^[11]

Digital transformation is a hot topic for companies across the globe^[1]. They are reaching for ways to improve their performances in relation to their use of new technologies as a way to grow, expand, attract and keep customers. Using these technologies effectively and keeping up with environmental changes revolving around an age of information and technology is vital for industries to compete in the global market and maintain a competitive advantage^[1]. In a research done by Westerman,Bonnet and MacAfee with different industries,they concluded — executives are digitally transforming three key areas of their enterprises: customer experience → operation processes → business models^[1]. They come up with 9^[1] different steps of digital transformation industries undergo to fit in the increasing competitive market.

1. Customer Understanding: What satisfies and dissatisfies customers.
2. Top-line growth: The use of technology to enhance in-person sales and conversations (personalized sales or customized products)^[1]
3. Customer Touch Points: Automated devices that respond to clients and their complaints faster.
4. Process Digitization: Automation that increases efficiency with respect to demand and supply.
5. Worker Enablement: Devices that allow staff in all positions of an industry to work anywhere and at any time without having to stay in an office to complete the job.
6. Performance Management: Ability to extend strategic planning sessions with businesses' top managers around the world to gain different perspectives on the vision of an industry.^[1]
7. Digitally Modified Businesses: Businesses incorporating digital offerings and the use of digital technologies to share content with other organizations and customers.^[1]
8. New Digital Businesses : Companies introducing digital products that complement their traditional products.
9. Digital Globalization: Businesses are able to do business with companies around the world without having to be present physically.

Not all of these steps are required to be applied at once in an industry^[1]. In fact businesses heading in a direction of digital transformation undergo these steps one step at a time, balancing the traditional and modern ways of running a business in order to avoid business risks. IBM, in their analysis of leading companies, found in their research: companies with a cohesive strategy for integrating digital and physical elements can successfully transform their business model — and set new directions for entire industries^[2].

The goal is to invest in informed models that help businesses recognize opportunities, overcome challenges, and make decisions to stay in step, if not ahead of digital customers^[3]. Companies that stay ahead are those who are able to recognize the changes taking place within customer behavior and expectations. The lives of individuals revolve around technology, they are using the internet for entertainment, shopping, socializing and for household management^[2].Therefore businesses will often reciprocate knowing this, and deliver the needs and wants of customers through the use of new technologies. Some of the promising benefits of doing so are the following listed by Brian Solis from "Report: Digital Transformation and the New Customer Experience^[3].

• Updated company vision
• Thriving culture of innovation
• Improved customer journey
• Greater competitive advantage

While some companies may benefit from digital transformation, others may not. Corporate budgets everywhere are under strain, and IT is often still seen as a cost rather than as a source of new business models and revenues^[4].Changing a traditional business model into a modern model of business through digital transformation can be challenging and expensive for businesses. The process can be risky and requires a great business strategy to avoid failures. A digital transformation isn't always the best way to gain revenue and profits depending on the business^[4], it is a process and some industries may want to keep their traditional ways of doing business before jumping into such a transformation until the time, money, and resources are available.

In November 2011, a three-year study conducted by the MIT Center for Digital Business and Capgemini Consulting concluded that only one-third of companies globally have an effective digital transformation program in place.^[12]

The study defined an "effective digital transformation program" as one that addressed

• "The What": the intensity of digital initiatives within a corporation
• "The How": the ability of a company to master transformational change to deliver business results.^[12]

• Information age
• Information revolution

Category:Information technology Category:Social change